Environmental Effects of Agricultural Land-Use Change: The Role of Economics and Policy

This report examines evidence on the relationship between agricultural land-use changes, soil productivity, and indicators of environmental sensitivity. If cropland that shifts in and out of production is less productive and more environmentally sensitive than other cropland, policy-induced changes in land use could have production effects that are smallerùand environmental impacts that are greaterùthan anticipated. To illustrate this possibility, this report examines environmental outcomes stemming from land-use conversion caused by two agricultural programs that others have identified as potentially having important influences on land use and environmental quality: Federal crop insurance subsidies and the Conservation Reserve Program (CRP), the NationÆs largest cropland retirement program.